An Illinois attorney appointed to protect settlement money belonging to four minors is accused of using fake court orders to withdraw more than $400,000 from their accounts.
David Elliot, 41, a Bethalto attorney, was indicted on 15 federal bank and mail fraud charges. The allegations stem from his appointments as guardian ad litem for three minors in 2016 and another minor in 2017 in Madison County.
In that role, Elliot was responsible for representing the children’s best interests and handling bank accounts established in their names with money from lawsuits involving their deceased parents. He was not permitted to withdraw settlement funds from those accounts without a special court order.
Instead, prosecutors say Elliot created false court orders and presented them to the bank to obtain money between May 2019 and October 2022. First Alert 4 reported that two of the minors never received their settlement money and another received only a small portion.
He Was Supposed to Protect the Children’s Settlement Accounts
The Circuit Court of Madison County appointed Elliot in 2016 to serve as guardian ad litem for three minors in litigation brought on behalf of their deceased mother. The court appointed him to the same role in 2017 for another minor in a case involving the child’s deceased father.
A guardian ad litem is appointed to represent a minor’s best interests and make reports and recommendations to the court. In these cases, Elliot also operated bank accounts established in the minors’ names to hold their settlement proceeds.
Prosecutors say Elliot’s compensation was to be paid before settlement funds were distributed. Any later withdrawal from one of the children’s accounts required a special court order.
Fake Court Orders Allegedly Unlocked More Than $400,000
The indictment accuses Elliot of bypassing that restriction by creating fraudulent court orders that appeared to authorize withdrawals from the minors’ accounts.
He allegedly presented the false orders to the bank and withdrew more than $400,000 between May 2019 and October 2022. Prosecutors have not publicly provided a complete breakdown showing the amount taken from each account or how all of the money was used after it was withdrawn.
Elliot now faces 15 federal bank and mail fraud charges connected to the alleged scheme.
Money From Two Accounts Was Moved Before Another Child Turned 18
The indictment describes an additional step as one of the minors approached age 18 and was nearing the point when the settlement money could be accessed.
Prosecutors say Elliot withdrew money from accounts belonging to two other minors and transferred it into the account of the child who was about to turn 18. The government accuses him of making the transfers to conceal earlier missing money before the beneficiary could discover the shortage.
According to the indictment, two of the minors ultimately received none of the settlement funds owed to them, while another received only a small portion.
Another Fake Order Allegedly Said the Money Was Locked Until 21
Prosecutors also accuse Elliot of creating a false court order to convince one of the minors that the settlement money could not be accessed until age 21.
The purported restriction was not a genuine court order, according to the indictment. Prosecutors say it gave Elliot additional time before the beneficiary could seek access to the account.
The indictment contains accusations that have not been proven in court. Elliot is presumed innocent unless convicted.
Bank Fraud Counts Carry Up to 30 Years
Each federal bank fraud charge carries a maximum possible sentence of 30 years in prison and a fine of up to $1 million. Mail fraud carries a maximum of 20 years in prison and a fine of up to $250,000.
Those are statutory maximum penalties rather than a prediction of Elliot’s sentence if he is convicted. Any punishment would be determined by the federal court based on the charges of conviction and applicable sentencing rules.
Elliot’s jury trial is currently scheduled for November 9 at the federal courthouse in Benton, Illinois.
How Families Can Verify Settlement Funds and Court Orders
Families dealing with settlement money held for a child should keep copies of the settlement agreement, account statements and every court order governing when or how the money can be withdrawn. If an attorney presents an unexpected order restricting access or authorizing a withdrawal, the document can be compared with the official court file rather than relying only on the copy supplied by the person managing the funds.
Bank statements can also be reviewed against the court orders authorizing withdrawals. An unexplained transfer, missing balance or restriction that does not appear in the official court record should be raised with the court, the financial institution or independent legal counsel promptly.
Illinois residents who believe a lawyer engaged in dishonest conduct can file a complaint with the Attorney Registration and Disciplinary Commission. The ARDC recommends keeping copies of court papers, receipts, letters and other records that support a complaint.
The ARDC also operates a Client Protection Program for certain losses caused by dishonest conduct by Illinois lawyers. The program can reimburse eligible losses of up to $150,000 per loss, subject to its requirements, including that the lawyer has been disciplined or has died and that the claimant has made reasonable efforts to pursue other available recovery.